Simon Easterby admits the Scarlets face a massive challenge against Clermont Auvergne after riding their luck against Racing Metro.
The Welsh region were brimming with confidence following last week's stunning victory over Harlequins.
But they let a 23-10 lead slip and breathed a huge sigh of relief after the French club saw a would-be match-winning try ruled out as the sides settled for a draw.
The Scarlets remain at the top of Pool Four but face last season's runners-up, who beat them twice last year, in a daunting December double header.
"It is a daunting task," said Easterby.
"The double-header will be huge for us. Clermont are a quality outfit and have stacks of quality players in depth.
"We played them last year and came unstuck in both games but we have grown this year. We probably would have lost to Racing last year and the Harlequins result was a big positive for us, we're a better side in this competition.
"We play them a week after Wales' fourth international so the preparation will be key that week.
"They can only put 15 players on the pitch and we are very competitive with out starting side."
Easterby was disappointed as the Scarlets threw away a 13-point lead but he admitted his side were fortunate to escape with a draw after Wenceslas Lauret's last-gasp try was ruled out.
Jonny Sexton ripped the ball out of contact but the TMO adjudged he knocked the ball on in the process as the Scarlets escaped.
"We gave them a bit of an early advantage and then we did really well for 25-30 minutes at the end of the first-half to really take the game away from them," added Easterby.
"At 23-10 we were comfortable but a couple of errors and inaccuracies allowed them back in the game. In the run of it we were a bit fortunate not to concede a try at the end.
"The law suggests you can rip the ball but Sexton's hand suggested he touched it on the way down to the ground. But we shouldn't have been in that position anyway.
"There are a couple of positives but we're competing against the best in European and the biggest budgets and we're very much alive in the group."